Kenya's foreign exchange reserves had reached a new high of 7.85 billion U.S. dollars as of Thursday, marking an increase for the third consecutive week, the Central Bank of Kenya (CBK) said in its weekly financial market update released Friday evening.
NAIROBI, Sept. 22 (Xinhua) -- Kenya's foreign exchange reserves had reached a new high of 7.85 billion U.S. dollars as of Thursday, marking an increase for the third consecutive week, the Central Bank of Kenya (CBK) said in its weekly financial market update released Friday evening.
The reserves rose from 7.34 billion dollars on Aug. 29, which covered 3.8 months of imports, the apex bank noted.
"The usable foreign exchange reserves remained adequate at 7.85 million (4.1 months of import cover) as of Sept. 19. This meets the CBK's statutory requirement to endeavor to maintain at least 4 months of import cover," said the central bank.
The reserves have continued to grow as the Kenyan shilling stabilizes around 129 units to the dollar. This stability has reduced the need for the central bank to step in to manage volatility in the currency market, allowing reserves to accumulate.
The bank normally intervenes based on fluctuations in the shilling's value, which can lead to either positive or negative changes in the reserves. During the week ending Sept. 19, the shilling traded at an average of 129.2 units to the dollar, remaining stable against major international and regional currencies. ■